Credo scores again with Pasir Panjang en bloc sale

Published September 25, 2010


A SMALL 16-unit walk-up development at Pasir Panjang Road has been sold in a collective sale exercise to boutique developer Link (THM) Greenleaf for $33 million.

The sale was handled by Credo Real Estate - its third successful en bloc deal in as many weeks. The other two were Pastoral View and Robin Court.

So far this year, Credo has closed seven en bloc deals, giving it a market share of 44 per cent by deal value.

The Pasir Panjang project, built in the 1960s, was put up for sale by tender with an indicative price of $26 million to $30 million.

Credo managing director Karamjit Singh said yesterday the tender closed with several parties offering above $30 million. Link (THM) emerged the winner in a hotly contested tender that attracted a total of 10 offers. Mr Singh attributed the strong interest to the site's location, less than 100 metres from the future Haw Par MRT Station. It also has elevated terrain that allows for sea views from the third level upwards.

The land area is 2,626 square metres or 28,263 sq ft. Under the 2008 Master Plan, it is zoned for residential development up to a gross plot ratio (GPR) of 1.4 and an allowable height of up to five storeys.

A proposed new development built at a GPR of 1.4 plus 10 per cent bonus for balconies would also be free of a development charge, as the development baseline is high.

The total gross floor area (GFA) allowed is 53,523 sq ft, including the additional 10 per cent balcony GFA. The site may be configured into about 40 apartment units with an average size of 1,000 sq ft, depending on layout and configuration.

The sale price of $33 million translates to a land cost of $758 per sq ft per plot ratio (psf ppr) at a GPR of 1.54 (including the balcony GFA) or $834 psf ppr at a GPR of 1.4.

With the sale, the owners stand to receive an average price of $2.06 million. The sale is subject to the approval for sale by the Strata Titles Board, if necessary.

Source: http://www.businesstimes.com.sg